Beginner's guide

Agarwood, explained for farmers

Everything you need to know before planting your first Aquilaria tree, in plain words.

What agarwood is

Agarwood, also called oud, agar or aloeswood, is the dark, fragrant resin that forms in the heartwood of Aquilaria trees. The tree makes it to defend itself after it is wounded or infected by fungus. Without that trigger, the wood stays pale and has little value.

Why it is so valuable

• Only about 7 to 10 in 100 wild trees form resin naturally.
• About 70 kg of wood gives at most around 20 ml of oud oil after distillation.
• It is used in perfume, attar, incense and traditional medicine, in India, the Gulf and East Asia.

Prices vary enormously with grade. Plantation-grown, inoculated wood sells for much less than rare wild wood, so be wary of anyone quoting wild-wood prices for a plantation.

How plantations make resin: inoculation

Growers start resin formation by deliberately wounding the tree and introducing fungus. Common methods are bark paste, fungus-filled sticks, drilling and injecting, and nailing. Trees are usually ready once they reach about 18 inches around the trunk, typically at 6 to 8 years.

A realistic timeline

1. Year 0: land check, pits and planting in the monsoon.
2. Years 1 to 5: care, gap-filling and intercrops for early income.
3. Years 6 to 8: inoculation once trees are thick enough.
4. Years 8 to 12: harvest, grading and sale, with the required permits.

Does it suit Kolhapur?

Aquilaria likes 20 to 33 °C, heavy rainfall, deep soil and no standing water. Waterlogging is a main reason young trees die. Kolhapur's western talukas, such as Gaganbawada, Radhanagari, Chandgad, Ajra and Shahuwadi, get that kind of rainfall. Eastern talukas such as Shirol and Hatkanangale are much drier and would need irrigation.

The legal side

Aquilaria is listed under CITES, the international treaty on trade in protected species, and India controls agarwood exports through a quota. To sell legally you should register your plantation with the forest department, keep planting records, and expect to need a transit pass to move the wood. We help our clients with this paperwork.